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on purposive sample technique. Also data from the company’s sales record for the 1998 and 1999 sales promotion period was also used. These data were analyzed using simple statistical tools such as, percentages, tables, charts/graphs. Chi-square was used to test the hypothesis at 0.95 significant level. Results from the findings of this research established a positive relationship between sales promotion and sales volume leading to rejection of null hypothesis. That is, it was established that effective sales promotion of Royco induces greater sales of Royco, which in turn results to greater demand of Agro-Products used in the production of Royco. Necessary policy recommendations were made on how to improve the quality and effectiveness of sales promotion.